ers. Direct labor hours are Previous NextOptions Ch4F Kimmel, Accounting, 6e Acc

Question

ers. Direct labor hours are Previous NextOptions Ch4F Kimmel, Accounting, 6e Accounting I & II (ACCT 221 & ACcT ractice Assignment Gradebook ORION Downloadable eTextbook ignment Brief Exercise 17-5 Morgana Company identifies three activities in its manufacturing process: machine setups, ma 252,000, and $72,000, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,200, and number of inspections 1.500. Compute the overhead rate for each activity. Machine setups s Machining per setup per machine hour per inspection Click if you would like to Show Work for this question: apsn Shon Work LINK TO TEXT

Explanation / Answer

Process Cost Amount Cost driver No.of cost driver Rate per cost driver Machine setup 190000 No of setups 2500 190000÷2500=76 Machineing 252000 Machine hours 25200 252000÷25200=10 Inspection 72000 No of inspection 1500 72000÷1500=48

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